We are in the middle of one of the biggest battles in the class war and BIG MONEY is trying to brainwash you again. The big Republican complaint right now is about inflation. Let us dig into why this is another round of horse shit.
Remember when your savings account grew all on its own, even if it was a slow investment? You could at one time get nearly 5% interest on a basic savings account. Of course, you would have to be old enough to remember that. Do you know why that is no longer the case? TO CAUSE INFLATION to meet the FEDs TARGET INFLATION RATE. In other words, for over two decades now the economy has been so slow that the Fed has been keeping your home values going up by slowly eliminating returns on saving account through low interest rates. See, you get cheap credit or strong savings returns depending on whether the fed raises or lowers the interest rate.
So, when Republicans tell you to be afraid of inflation, what they mean to say is they are afraid the profitability of your savings account will mean they pay higher interest on their loan which the bank borrowed from your deposit savings account, and that interest is your payment for allowing use of your deposit savings in the bank’s loan department.
As inflation rises the Federal Reserve raises interest rates to counter the inflation, which is exactly where we need to be until savings accounts begin working for the working class again. The inflation Republicons are trying to scare you with is needed to repair our fledgling interest rates and make savings a good thing for the working class.
For more on interest rates: How Banks Set Interest Rates on Your Loans (investopedia.com)
For more on inflation rates: What is the Relationship Between Inflation and Interest Rates? (investopedia.com)